L’Oreal Wage Deal Rejected Over Fairness, Class-Status Problems

A California federal judge rejected a proposed $425,000 settlement between L’Oreal USA and more than 400 employees in California, citing significant fairness concerns and class certification deficiencies.

The deal doesn’t address the employees’ Fair Labor Standards Act overtime claim—which “points toward possible collusion” between the parties—and the employees haven’t provided enough evidence to satisfy basic class-action criteria, Judge Sheila K. Oberto of the U.S. District Court for the Eastern District of California said Monday. The court denied the employees’ motion for preliminary approval of the settlement.

Angela Conti and Justine Mora filed a proposed class action against L’Oreal SD Inc., ...